Emotional AI Market Size, Share, Opportunities, And Trends By Deployment (Cloud, On-premise), By Applications (Automotive, Consumer Electronics, Customer Services, Gaming, Healthcare, Others), And By Geography - Forecasts From 2024 To 2029

The emotional AI market is estimated to reach US$7.003 billion by 2029, from US$3.745 billion in 2024, growing at a CAGR of 13.34%.

An emotional AI is an artificial intelligence solution that can recognize and analyze human facial expressions and vocal tones and interact accordingly. The solution can detect human emotions through texts, audio, and video. Emotional AI is set to play a crucial role in the global automation of various industries, such as healthcare, automotive, gaming, and entertainment. It offers multiple benefits to the users, as it helps in offering and conveying empathy and support in the conversation, and can also enhance the interaction between a machine and a human.

Emotional AI also offers its application in understanding the cognitive condition of an individual and can also recognize human reactions. In advancing mental healthcare technologies, emotional AI models are set to play a critical role. Emotional AI, in the mental healthcare environment, can understand the situation of patients and can predict multiple outcomes by leveraging machine learning and advanced algorithms. This model can also fast-track the diagnosis process, as the emotional AI model can understand the mental condition of the patients through limited exchanges and can monitor multiple data points like facial expressions and human voice tone.

What are the emotional AI market drivers?

• Increase cases of mental issues.

The increasing cases of mental illness and disorders worldwide are among the key factors forecasted to propel the global emotional AI market forward.  

Emotional AI can offer early detection of illness and suggest preferred treatment and therapeutic procedures. The cases of mental illness, which includes depression, anxiety, stress, and autism, among others, witnessed a significant increase over the past few years. In its report, the World Health Organization (WHO) stated that in every 100 children globally, there is at least 1 case of autism. The organization stated that the characteristics and properties of autism can be perceived in the early stage of childhood, but it is generally not diagnosed or identified till the later stage of age.

The cases of depression among the global population have also witnessed a massive increase. For instance, in Canada, about 6.5% of the nation’s population, aged between 15 and 24, suffer from major depression every year, whereas nearly 7% of the adult population of the nation has symptoms of depression.

Furthermore, Statistics Canada, in its report, stated that the cases of mental disorders in Canada also witnessed a massive increase. The department stated that in 2022, the prevalence of anxiety, mood, or substance disorders reached 18%, whereas the cases of social phobia were recorded at 7.1%.  Similarly, the number of major depression episodes among the total population of the nation was estimated at 7.6% in 2022, and the cases of general anxiety and bipolar disorder in the nation were observed at 5.2% and 2.1%, respectively.

• Growing usage of chatbots.

The rising use of chatbots across major industries is also forecasted to boost the global emotional AI market growth during the forecasted timeline. Chatbots offer multiple benefits to companies, as they help in improving the customer service experience of the organizations. With the implementation or integration of emotional AI into the customer service chatbots, the overall customer service experience will also increase significantly, boosting customer retention. The AI chatbot integrated with an emotional intelligence model can understand the problems and queries of the customers and can streamline the overall service process.

Chatbots with emotional AI can also play an essential role in offering help to people who are struggling with mental health issues like depression and anxiety. The emotional AI model's capability to recognize signs of mental issues, like stress and depression, can further provide sympathetic responses and coping procedures, which can help in reducing the anxiety of the users. For instance, the EVI platform from Hume AI can offer chat capability with the integration of emotions and support through its sophisticated AI chatbot Kora and the Claude 3.5 Sonnet, which utilizes a large language model (LLM) to understand the chat patterns and behavior of the users.

Geographical outlook of the emotional AI market

• North America is forecasted to hold a major share of the Emotional AI Market.

The North American region is forecasted to witness greater global emotional AI market growth.

This region is among the fastest developing regions in the technological sector. It is also among the global leaders in adopting new technologies like AI into multiple sectors, like healthcare, education, BFSI, and automotive. North American countries, like the USA and Canada, also introduced multiple investment policies and opportunities to integrate new technologies like AI into the healthcare sector, which can boost the efficiency of the healthcare industry in the region.

Products offered by the key companies in the emotional AI market:

• Woebot is among the leading global companies that provide therapeutic chatbot solutions that utilize the emotional AI model to help improve the users' mental health. Woebot offers cognitive-behavioral therapy and other psychological approaches to improve the users' cognitive state.
• Uniphore is among the leading technological solution providers in the globe. The company offers a wide range of products and solutions, including X-platform, X-Stream, U-Self Serve, U-Assist, and U-Analyze, among many others. The company also offers solutions for multiple industries like B2B tech support, banking, healthcare, telecom, and high-tech. The emotional AI model of the company can capture the individual's emotions in every interaction.

Key developments in the emotional AI market:

• In September 2024, Hume AI Inc. introduced its latest EVI 2, a voice-to-voice model, which features multiple features like anticipating and adapting the user's preference, made possible with emotional intelligence training. The model is trained to maintain a personality and character which is interesting to interact with.
• In May 2024, OpenAI launched its latest AI model, GPT-4o, which features the emotion detection capability of the user. The GPT-4o offers multiple capabilities, such as accepting input in text, audio, image, or video and generating any combination of audio, text, and image output. The model can also observe the tone, background noises, and multiple speakers, generating laughter and expressing emotions.

Emotional AI Market Scope:

Report Metric	Details
Emotional AI Market Size in 2024	US$3.745 billion
Emotional AI Market Size in 2029	US$7.003 billion
Growth Rate	CAGR of 13.34%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Deployment Application Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Emotional AI Market	Entropik Tech IBM Corporation Amazon Inc. Hopelab Emotibot (Zhujian Intelligent Technology Co., Ltd.)
Customization Scope	Free report customization with purchase

 

Emotional AI Market is analyzed into the following segments:

• By Deployment
  • Cloud
  • On-Premise
• By Application
  • Automotive
  • Consumer Electronics
  • Customer Services
  • Gaming
  • Healthcare
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • Spain
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Singapore
    • Indonesia
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. EMOTIONAL AI MARKET BY DEPLOYMENT

5.1. Introduction

5.2. Cloud

5.3. On-Premises

6. EMOTIONAL AI MARKET BY APPLICATION

6.1. Introduction

6.2. Automotive

6.3. Consumer Electronics

6.4. Customer Services

6.5. Gaming

6.6. Healthcare

6.7. Others

7. EMOTIONAL AI MARKET BY GEOGRAPHY

7.1. Introduction

7.1. North America

7.1.1. By Deployment

7.1.2. By Application

7.1.3. By Country

7.1.3.1. United States

7.1.3.2. Canada

7.1.3.3. Others

7.2. South America

7.2.1. By Deployment

7.2.2. By Application

7.2.3. By Country

7.2.3.1. Brazil

7.2.3.2. Argentina

7.2.3.3. Others

7.3. Europe

7.3.1. By Deployment

7.3.2. By Application

7.3.3. By Country

7.3.3.1. United Kingdom

7.3.3.2. Germany

7.3.3.3. France

7.3.3.4. Italy

7.3.3.5. Spain

7.3.3.6. Others

7.4. Middle East and Africa

7.4.1. By Deployment

7.4.2. By Application

7.4.3. By Country

7.4.3.1. Saudi Arabia

7.4.3.2. UAE

7.4.3.3. Others

7.5. Asia Pacific

7.5.1. By Deployment

7.5.2. By Application

7.5.3. By Country

7.5.3.1. China

7.5.3.2. Japan

7.5.3.3. India

7.5.3.4. South Korea

7.5.3.5. Australia

7.5.3.6. Singapore

7.5.3.7. Indonesia

7.5.3.8. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Entropik Tech

9.2. IBM Corporation

9.3. Amazon Inc.

9.4. Hopelab

9.5. Emotibot (Zhujian Intelligent Technology Co., Ltd.)

9.6. Affectiva

9.7. Addlink Technology

9.8. MorphCast

9.9. Uniphore

9.10. Imentiv

9.11. iMotions A/S

9.12. Realeyes

9.13. Noldus Information Technology BV

9.14. SmartEye

9.15. Woebot Health

Entropik Tech 

IBM Corporation 

Amazon Inc. 

Hopelab 

Emotibot (Zhujian Intelligent Technology Co., Ltd.)

Affectiva 

Addlink Technology 

MorphCast 

Uniphore 

Imentiv 

iMotions A/S 

Realeyes 

Noldus Information Technology BV 

SmartEye 

Woebot Health